While the benefits of soil water management practices relative to soil erosion have been extensively documented, evidence regarding their effect on yields is inconclusive. Following a strong El-Niño, some regions of Ethiopia experienced major droughts during the 2015/16 agricultural season. Using the propensity scores method on a nationally representative survey in Ethiopia, this study investigates the effect of two widely adopted soil water management practices - terraces and contour bunds - on yields and assesses their potential to mitigate the effects of climate change. It is shown that at the national level, terraced plots have slightly lower yields than non-terraced plots. However, data support the hypothesis that terraced plots acted as a buffer against the 2015 Ethiopian drought, while contour bunds did not. This study provides evidence that terraces have the potential to help farmer deal with current climate risks. These results can inform the design of climate change adaptation policies and improve targeting of soil water management practices in Ethiopia.
Keywords: Climate-smart agriculture; Contour bunds; Drought; Ethiopia; Propensity score matching; Soil water management practices; Terraces.